Bond Ratings and Disclosures
UPMC’s close attention to quality and costs has yielded tangible returns in the financial markets, as reflected in our credit ratings from all three major rating agencies, Moody’s Investors Service, Standard & Poor’s (S&P), and Fitch Ratings.
Moody's
In July 2007, Moody’s assigned an Aa1 long-term rating (Global Rating Scale) to certain UPMC obligations and affirmed its Aa3 long-term (Municipal Rating Scale) rating on UPMC’s outstanding tax exempt bonds.
These ratings are based on UPMC’s robust and notably strengthening financial profile, which is a direct result of:
- the success of UPMC’s clearly articulated business goals
- our unique operating posture as an integrated delivery system centered around an academic medical center
- our distinctly leading market position in western Pennsylvania
- our continued focus on core clinical competencies
These fundamental strengths, which shape UPMC’s formidable credit profile, distinguish us from our local and national peers. Moody’s also has assigned UPMC its highest short-term rating, VMIG-1.
Standard & Poor’s
In a May 2007 review, Standard & Poor’s (S&P) upgraded UPMC’s long-term rating to AA-. This rating reflects UPMC’s very strong business position as an integrated regional delivery system based in Pittsburgh, with a dominant business position in Allegheny County, Pa.; a solid position in a large, 29-county area in western Pennsylvania; and a close relationship with our academic partner, the University of Pittsburgh. UPMC’s business volumes and market share continue to grow despite overall softness in regional inpatient volumes.
In summarizing its decision, S&P again noted that UPMC has a number of broad strengths, including:
- the ability to maintain a dominant business position in Allegheny County and a solid position in a 29-county area of western Pennsylvania
- the success of the UPMC Health Plan in the region’s insurance market
- the continued development of eRecord, UPMC’s electronic health record, which is used to measure quality improvement efforts that in turn support continued growth
S&P has assigned UPMC with its highest short-term rating, A-1+.
Fitch Ratings
In November 2006, UPMC received an upgrade to AA- from A+ in its long-term credit rating from Fitch Ratings which was affirmed in May 2007. Fitch Ratings based these ratings on UPMC’s consistently improving operating profitability, dominant and growing market presence, strong management practices, and consistent profitability growth. Fitch Ratings describes UPMC as the market leader in the Pittsburgh and western Pennsylvania health care markets and as the only not-for-profit health system to fully adopt and receive auditor certification from Sarbanes-Oxley implementation (including section 404). Finally, Fitch Ratings lauds our efforts on several national and international strategic business initiatives to further enhance the UPMC brand and to diversify our revenues. Fitch Ratings also has assigned UPMC its highest short-term rating, F1+.